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Reasons for investors to celebrate Brazil's Independence Day

16th August 2007 Print
Pipa Paradise, Brazil September the 7th is an incredibly important day in the Brazilian calendar – it’s a significant national holiday when all Brazilian citizens come together to commemorate Independence Day and to remember when, in 1822, their nation finally achieved its autonomy from three centuries of Portuguese rule.

Today Independence Day in Brazil focuses more on celebrating the current and future achievements of the most successful economy in South America which is rapidly developing, successfully expanding and built on extremely robust fundamentals - and so if you’re in Brazil on September the 7th you’d better be prepared to party!

Brazil is truly an exciting and continuously emerging economic success story; it’s a nation that has suffered more than its fair share of political and economic upheaval, even in its recent history. For example Brazil only returned to democratic rule in 1988, and then in 1999 Brazil suffered a mass exodus of investor interest and it required an IMF rescue package in 2002.

But with the successful election of Luiz Inácio Lula da Silva as President in 2002, Brazil’s fortunes began to change significantly for the better.

The IMF loan was repaid early; by 2004 the Brazilian economy was out performing all expectations and GDP is on target to grow by over 4% again this year. 2004 also saw real estate prices increase by as much as 20% in the north-eastern region of the nation where property investor focus remains particularly intense and where the strongest rental yields and capital appreciation percentages are still recorded.

There was a 134% increase in visitor numbers between 2002 and 2005 with the World Travel and Tourism Council announcing in March of this year that travel and tourism demand in Brazil is now growing at a rate of 7.2% annually which is vastly in excess of global averages.

It’s therefore abundantly clear that since Brazil’s new administration took office, the government has succeeded in creating an economy ripe for foreign investor interest and in promoting a fiscal and political environment conducive to growth.

However some property investors wondering when to time their entry into Brazil’s real estate sector have been biding their time and watching for signs of the sustainability of the current reforms and development of the nation economically and politically speaking. So now that all predictions for the healthy continuance of development are positive, some of the largest property investors in the world are making their market entry and committing to the long term for maximum profitability and thus leading the way for the rest of us.

In June 2007 it was announced at the Reuters Real Estate Summit in New York that General Electric Real Estate, which is one of the world’s largest and most diversified real estate investors and a global company that property investors the world over watch and learn from, is entering Brazil’s property market. Joseph Parsons, president of North American equity at GE Real Estate dubbed Brazil “the new Mexico” - i.e., a market in which GE has already invested hundreds of millions of dollars into property - and so this bodes exceptionally well for the levels of global confidence in Brazilian property as an ongoing concern.

Rio Grande do Norte which is the north-eastern region of Brazil is proving most popular with property investors. This is because of a number of key reasons: -

- There is an established and thriving tourism industry in Rio Grande do Norte where the weather is the best in Brazil and where visitors can enjoy between 320 and 360 sunny days every year

- This is also the safest region in Brazil; it’s free from terrorism, hurricanes, tsunamis and earthquakes and it’s the region most popular with international tourists

- Rio Grande do Norte and its capital city of Natal are easily and affordably accessible from Europe and the UK and the region will soon be home to the world’s fifth largest airport

- Rio Grande do Norte is receiving significant public and private investment to improve accessibility, infrastructure, amenities and desirability and there is a common commitment to make the region the most desirable for tourists, expatriates and international retirees.

For investors keen to commit to Brazil and to directly access the nation’s exceptionally strong tourism market in north-eastern Brazil, a new property development from Experience International is ideally located, perfectly planned and exceptionally attractively priced.

Pipa Paradise lies within easy driving distance of Rio Grande do Norte’s international airport and its capital city of Natal and the development consists of two distinctive and private gated communities of apartments and villas which are being built to the highest European standards.

The high standards of build will certainly attract and accommodate discerning buyers and holidaymakers who will also appreciate the stunning seafront location and the high-grade onsite amenities which include swimming pools, a luxurious spa and state of the art fitness centre, an open air restaurant as well as discrete 24 hour security.

Prices for these exceptionally attractive properties from Experience International start at just £55,126 for a two bedroom apartment or £120,525 for a three bedroom villa. For more information, visit experience-brazil.co.uk.

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Pipa Paradise, Brazil